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CONTROLLING THE CANAL

December 1999
Does handing over the Panama Canal pose national security dangers to the United States? William Ratliff of the Hoover Institution at Stanford University and John J. Tierney of The Institute of World Politics in Washington, D.C., respond to your questions.

Questions asked in this forum


Forum introduction

Is the Panama Canal an American territory?

Do Marxist movements in Latin America threaten the security of the canal?

Can handing over the canal -- in a spirit of international peace -- increase security in the canal zone?

What will the hand-over's economic impact be to Panama?

How will the canal be run differently by Panama?

Can the U.S. strengthen ties with Panama via free trade relations?

 



NewsHour Links


Online Special:
The Panama Canal

Dec. 13, 1999:
An in-depth look at the Panama Canal and U.S. interests.

Browse the NewsHour's coverage of Latin America.

 

 

Outside Links

The Hoover Institution

The Institute of World Politics

The Panama Canal Commission

The U.S. State Department

 

George R. Lawson, of Seal Rock, OR, asks:

There should be no question of who controls the Panama Canal. The canal was built by the U.S., was always owned by the U.S., and should have been retained by the U.S. The U.S. title to the Panama Canal is more certain than its title to Texas or California, not to mention Hawaii. If we want to give it away we should give it to Colombia, who has more right to it than Panama. There would be no Panama without Teddy Roosevelt. What is the response of the experts?

 

William Ratliff responds:

There is now no question who controls the canal: Panama does. In 1977 President Carter made the handover a top priority issue; his NSC chief Zbigniew Brzezinski called it "a necessary precondition for a more mature and historically more just relationship with Central America." Many in the United States opposed the treaty then and do today. Still the treaty was signed, Americans should accept it and deal rationally with legitimate security concerns and casting the phony ones aside.

The term used officially in Panama for the handover -- "transferencia" -- obliquely recognizes some of your points. That is, we can not "return" a canal that didn't exist until we built it to a country that didn't exist until we helped found it. So we "transferred" it. Colombia lost out almost a century ago when its legislature refused to follow the recommendation of its negotiators and give the United States the concession it had previously given France. So the U.S. supported a Panama independence movement in exchange for the concessions "in perpetuity" it couldn't get from Colombia. It is true that the U.S. title to the canal was at least as good as its title to Texas. But realistically, we can't keep the canal now and won't give it back to Colombia any more than we will give Texas back to Mexico -- or the United States back to the Indians, for that matter.

 

John J. Tierney responds:

The question reflects the view held by many Americans during the 1978 treaty debates. Senator Strom Thurmond expressed it as follows: "We on it, title in fee simple."

The issue of American sovereignty, however, was always a myth. Philippe Bunau-Varilla, who wrote the 1903 treaty in favor of the U.S. testified that "The United States, without becoming sovereign, received the exclusive use of the rights of sovereignty…" The words of the original treaty allowed the U.S. to use the Canal "as if it were sovereign," later expressed in President William Howard Taft's famous phrase "titular sovereignty."

Usage over the century reflected the distinctions between Federal rule of the several states and ownership over foreign property, namely the Canal Zone:

  • The United States paid Panama annual indemnities; something a sovereign would not possibly do;

  • Panamanians born in the Canal Zone were citizens of Panama, not the United States;

  • The U.S. surrendered its rights to tax incoming goods from Panama to the Canal Zone;

  • United States General Laws (such as the criminal code) could not be applied in the Canal Zone;

  • The United States Constitution never automatically applied in the Canal Zone;

  • A 1930 U.S. Supreme Court decision defined the Zone's ports as "foreign";

  • The 1936 Hull-Alfaro Treaty termed the Canal Zone as the "territory of the Republic of Panama under the jurisdiction of the United States of America." The U.S. Senate ratified this pact;

  • A 1948 Supreme Court decision declared that while Congress "controlled" the Canal Zone, the U.S. did not possess "sovereignty";

  • After World War II, Washington officials repeatedly recognized Panama's sovereignty in the Canal Zone, as did all presidents from Franklin Roosevelt to Carter.

Whether or not the Canal "should have been retained by the U.S." is a judgement call and the jury is still out on that. In a perfect world, I would agree with the writer, but the political pressures for a transfer were severe in 1977 and had been developing for decades. The judgement of U.S. authorities -- with Senate concurrence -- was that retention was not worth the political and military price which the situation demanded.

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